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September 23, 2005
FCE Press Release: Forest City Announces Agreement to Acquire Land for Brooklyn Atlantic Yards Mixed-Use Project
CLEVELAND--(BUSINESS WIRE)--Sept. 22, 2005--Forest City Enterprises, Inc. (NYSE:FCEA)(NYSE:FCEB) today announced that the New York State transit agency has accepted the Company's offer to acquire 8.3 acres of land in Brooklyn for the development of its Brooklyn Atlantic Yards project.
The $100 million agreement with the Metropolitan Transportation Authority (MTA) is a significant milestone in Forest City's long-term development of the 21-acre Atlantic Yards mixed-use project. The site is located atop MTA's downtown Brooklyn rail yard. Forest City has also been acquiring additional adjacent land for the project from various private entities, and hopes to begin construction next year.
Atlantic Yards' centerpiece is expected to be a new 850,000-square-foot, Frank Gehry-designed sports and entertainment arena for the Nets basketball team, in which Forest City is an investor. The project will also feature 2.1 million square feet of commercial office space; 300,000 square feet of retail space; and 4.4 million square feet of residential space, consisting of approximately 4,500 units of affordable, middle-income and market-rate housing.
The Atlantic Yards site is adjacent to Atlantic Terminal, one of the largest transportation hubs in New York City, where nine different subway lines and the Long Island Railroad converge.
"Our long-term objectives are to build a great NBA franchise and use the arena as a catalyst for the Atlantic Yards project," said Bruce Ratner, president and chief executive of Forest City Ratner Companies. "We are excited to have the opportunity to implement a vision for a re-energized downtown Brooklyn. New York City is the most dynamic real estate market in the world, and we expect that Atlantic Yards will add to that feeling of energy and opportunity."
"We entered the New York City market in the 1980s with a focus on office buildings, and consistent with our Urban Strategy, expanded our presence to include retail, mixed-use and residential projects," said Charles A. Ratner, president and chief executive officer of Forest City Enterprises. "Today, through our Forest City Ratner Companies affiliate, we have a unique franchise that enables us to utilize public/private partnerships to develop large, complex projects that transform and improve the quality of life."
Other Forest City Ratner Projects
In addition to Atlantic Yards and Atlantic Terminal, Forest City owns properties in all five New York boroughs, and New York City is the Company's largest single market. Forest City has been working to revitalize downtown Brooklyn for nearly 20 years, including developing and owning the 10-block, 16-acre MetroTech Center corporate campus. Additionally, Forest City has under construction the new 1.5-million-square-foot, 52-story New York Times headquarters building, of which The Times will own and occupy (800,000) square feet and Forest City and its partner will own and manage the remainder of the building.
Corporate Description
Forest City Enterprises, Inc. is a $7.4 billion NYSE-listed national real estate company. The Company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate throughout the United States.
Contacts
Forest City Enterprises, Inc.
Thomas G. Smith or Thomas T. Kmiecik, 216-621-6060
On the Web: www.forestcity.net
Posted by lumi at September 23, 2005 6:36 AM